Steps in the Recording Process

The Ledger contains the entire group of accounts

maintained by a company.
Illustration 3-19

3-1

Steps in the Recording Process

Chart of Accounts listing of accounts used by a
company to record transactions.

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Steps in the Recording Process

Posting the process of transferring amounts from the
journal to the ledger accounts.
General Journal
Date Oct. 1 Account Title Cash Common stock Ref.
101

J1

Debit 10,000

Credit 10,000

General Ledger

Cash
Date
Oct. 1

Acct. No. 101

Debit
10,000

Explanation
Owner investment

Ref.
J1

Credit

Balance
10,000

3-3

SO 7

Steps in the Recording Process Review Question

Posting:
a. normally occurs before journalizing. b. transfers ledger transaction data to the journal. c. is an optional step in the recording process. d. transfers journal entries to ledger accounts.

3-4

SO 7 Explain what posting is and how it helps in the recording process.

The Recording Process Illustrated

Follow these steps: 1. Determine what type of account is involved. 2. Determine what items increased or decreased and by how much. 3. Translate the increases and decreases into debits and credits.
Illustration 3-21

3-5

SO 7 Explain what posting is and how it helps in the recording process.

The Recording Process Illustrated

Follow these steps: 1. Determine what type of account is involved. 2. Determine what items increased or decreased and by how much. 3. Translate the increases and decreases into debits and credits.
Illustration 3-22

3-6

SO 7 Explain what posting is and how it helps in the recording process.

The Recording Process Illustrated

Follow these steps: 1. Determine what type of account is involved. 2. Determine what items increased or decreased and by how much. 3. Translate the increases and decreases into debits and credits.
Illustration 3-23

3-7

SO 7 Explain what posting is and how it helps in the recording process.

The Recording Process Illustrated

Additional Transactions

Illustration 3-24

3-8

SO 7 Explain what posting is and how it helps in the recording process.

The Recording Process Illustrated

Additional Transactions

Illustration 3-25

3-9

SO 7 Explain what posting is and how it helps in the recording process.

The Recording Process Illustrated

Additional Transactions

Illustration 3-26

3-10

SO 7 Explain what posting is and how it helps in the recording process.

The Recording Process Illustrated

Additional Transactions

Illustration 3-27

3-11

The Recording Process Illustrated

Additional Transactions

Illustration 3-28

3-12

SO 7 Explain what posting is and how it helps in the recording process.

The Recording Process Illustrated

Additional Transactions
Illustration 3-29

3-13

SO 7 Explain what posting is and how it helps in the recording process.

The Recording Process Illustrated

Additional Transactions

Illustration 3-30

3-14

SO 7 Explain what posting is and how it helps in the recording process.

The Recording Process Illustrated

Additional Transactions

Illustration 3-31

3-15

SO 7

Summary Illustration of Journalizing

Illustration 3-32

3-16

SO 7 Explain what posting is and how it helps in the recording process.

Summary Illustration of Journalizing

Illustration 3-32

3-17

SO 7 Explain what posting is and how it helps in the recording process.

Summary Illustration of Posting

Illustration 3-33

3-18

SO 7 Explain what posting is and how it helps in the recording process.

The Trial Balance

A list of accounts and their balances at a given time. Purpose is to prove that debits equal credits.

Illustration 3-34

3-19